ARE THERE WAYS TO ASSURE THAT 529 UGMA WILL BE PEOPERLY SPENT?
Preparing for the future using 529 accounts.
Whenever a donor makes the decision to establish a 529 UGMA (Uniform Gifts to Minors Act) account, the provider of the account must bear in mind tat the money put into the account is owned by the child and cannot be used by the parent or custodian for any other person. The child will not receive the control of the account until he or she reaches a certain age. This rule was instituted by the state government. Despite this, the parent can use the money for the child’s benefit before he reaches termination age. If you suspect that the beneficiary of the 529 UGMA account will decide not to use the account for educational purposes, then do something about it.
Estate Taxes
Concerning the Estate Taxes
Estate Taxes
Estate txes are often referred to as the death tax. Few Americans are subject tp estate tas due to the exclusion on the first$2,000,000 of an estate (2006,2007, and 2008). Taxpayers with estates substantially in excess of this amount should consider planning to minimize estate taxe. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes. For family businesses it is important to ensure adequate liquidity is available to pay estate taxes (so the business does not have to be sold to pay the taxes).
Deal of the day
